Illegal logging drives deforestation in many countries, robbing national governments and local communities of valuable income and contributing to global biodiversity loss and climate change. Apart from its environmental and economic damage, illegal logging can fuel corruption, and is sometimes linked to organized crime and violent social conflict.

A new guide, Sourcing Legally Produced Wood: A Guide for Business, provides four actions companies can take to source legal wood. The guide aims to help companies avoid illicit logging in their supply chains—both for the good of the world’s forests and their own bottom lines.

Brazil is one of the most biologically diverse countries in the world. What is less known is that the country is the fourth largest industrial roundwood (timber left as logs, not sawn into planks) and wood pulp producer and ninth largest paper producer in the world. Brazil’s forest sector contributed 5 percent to the national gross domestic product in 2012. Brazil’s forests are not only home to communities and a haven for biodiversity, they are also part of the country’s economic backbone.

Brazil’s government has made impressive progress towards balancing forest protection and production. In 2012, deforestation in the Brazilian Amazon dropped to its lowest rate in more than two decades. Brazil’s National Institute for Space Research has pioneered the use of satellite data to prevent illegal logging. And the forest sector uses the Forest Source Document system (Documento de Origem Florestal, DOF), a sophisticated electronic system to track the wood flow throughout the supply chain.

Despite these positive steps, illegal logging and associated trade in the Amazon continues. Beyond the negative social and environmental impacts, illegal logging poses a serious problem for businesses producing legal wood products. With a price difference of up to 40 percent, legal wood simply cannot compete with cheaper illegal wood.

To reduce illegal logging and support the legal actors in the forest sector, Brazil must strengthen its forest control systems and policies.

Forests are vitally important for the global environment, economy, and population. The forest sector employs 13.7 million workers and contributes to about 1 percent of the global GDP. Plus, an estimated 500 million people around the world directly depend on forests for their livelihoods.

But forests are also under threat. From 2000-2010, about 15 million hectares of the world’s forests were cleared, and a 2004 assessment estimated that 8-10 percent of the global wood trade is of illegal origin. In addition to deforestation, illegal logging can cause government revenue losses, poverty, unfair competition with legally sourced goods, unplanned and uncontrolled forest management, conflicts, and other illicit activities that can occur in instances where illegal logging’s proceeds are linked to organized crime and corruption.

But there are solutions. One way to improve forest management across the globe is for businesses, governments, and citizens to seek out and demand sustainably harvested wood and paper products.

Though forests play an essential role in international efforts to reduce greenhouse gas emissions, the development of systems to monitor deforestation and forest degradation has been slow. This is due to the demanding technical requirements and the large capacity gaps in many countries. Measuring and monitoring change on the ground and via satellite in a consistent way is no easy task.

Countries need to develop national measurement, reporting, and verification (MRV) systems to monitor progress towards achieving REDD+ goals. Establishing procedures to do so would be a significant outcome of the UN climate negotiations in Durban. This task falls to the Subsidiary Body for Scientific and Technological Advice (SBSTA).

Lessons from Cameroon, Indonesia, and Peru

This working paper examines the institutional, human resources, and financial capacities of three countries that have developed a forest and land-use information system, and highlights common enabling factors and challenges.

Forest carbon monitoring systems are necessary for tracking the effectiveness of national forest policies aiming to mitigate GHG emissions. This issue brief highlights the broad, fundamental technical capacity needs for forest carbon monitoring based on an assessment of current capacity gaps in...